February 2, 2001

NEW YORK, February 2, 2001. Bank Indonesia (the central
bank of Indonesia) has recently announced certain restrictions
with regard to foreign exchange transactions involving the
Indonesian rupiah. While Bank Indonesia has attempted to
clarify these restrictions, continued uncertainty, particularly
concerning the scope of the restrictions, remains throughout
the foreign exchange community. Further official clarification
may be provided in the coming days, and, indeed, the Committee
encourages Bank Indonesia to provide such clarification
to foreign exchange market participants as completely, transparently,
and quickly as possible.

The Committee understands that as a result of the uncertainty
surrounding the new restrictions, market participants may
be exposed to unanticipated risk. The Committee recommends
that each market participant with outstanding trades that
could be affected by the restrictions contact its counterparties
in order to determine jointly whether termination of these
trades would be appropriate.

The Committee believes that if the parties to these affected
rupiah transactions mutually agree to close out, then they
should agree on a mutually acceptable closeout price as
soon as possible. Market practice on closeout of existing
transactions normally involves valuing future payments with
a view toward determining discounted future cash flows.
One resource for finding a mutually agreeable closeout mechanism
is a statement by The Singapore Foreign Exchange Market
Committee published earlier today, entitled "Notes
of Meeting on Settlement of Indonesian Rupiah Transactions".